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Financial Viability Of Sustainable Adobes From Waste Within The Mezcal Industry. The Case Of El Rey De Matatlan In Oaxaca, Mexico Adobes Sustentables A Partir De Los Desechos De La Produccion De Mezcal

Author

Listed:
  • Pedro Santiago-Mateo
  • Rosa Maria Velazquez-Sanchez
  • Jesus Gomez-Velazquez
  • Abel Ramos Flores

Abstract

The recognition of Mezcal at the international level for being one of the best liquors in the world and for its particular artisanal production has generated an increase in its demand. We observed the proliferation of companies that make Mezcal, either with the artisanal process (92%), ancestral (1%), or industrial (7%). This has led to its production of more than 7 million liters and will continue to increase. Artisanal production is characterized by being family-owned that do not have the financial studies to be able to prevent all kinds of future events, which causes business to be vulnerable to national or international economic crises and that investors take advantage of their low resources to have a high-profit sharing. The growth in the production of mezcal has caused an increase in the generation of organic solid waste, called bagasse. The bagasse is normally burned in the open air or deposited which causes contamination. Bagasse is not being used to make products or crafts with these resistant fibers. The mezcal that is made in the state of Oaxaca, the most recognized nationally and internationally producer. The region of the central valley of Oaxaca has the largest number of mezcal companies that generate bagasse. There is also an increase in demand for adobe for the construction of new houses, hotels and/or for the restoration of buildings in the historic center. In this research, a five-year cost-benefit analysis was carried out in the manufacturing of adobe using bagasse from“El Rey de Matatlán†a family-owned company. First, the properties of bagasse fibers and their resistance were technically analyzed. Second, a cost-benefit evaluation methodology was used. The production of adobe with bagasse was analyzed as a sustainable construction material, to generate a new offering in the Mezcal industry and will allow artisanal producer, take advantage of the opportunity cost on this new use of bagasse. In the results, we show the technical, economic, and financial viability, as well as the benefit to the environment.

Suggested Citation

  • Pedro Santiago-Mateo & Rosa Maria Velazquez-Sanchez & Jesus Gomez-Velazquez & Abel Ramos Flores, 2021. "Financial Viability Of Sustainable Adobes From Waste Within The Mezcal Industry. The Case Of El Rey De Matatlan In Oaxaca, Mexico Adobes Sustentables A Partir De Los Desechos De La Produccion De Mezca," Revista Global de Negocios, The Institute for Business and Finance Research, vol. 9(1), pages 45-59.
  • Handle: RePEc:ibf:rgnego:v:9:y:2021:i:1:p:45-59
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    More about this item

    Keywords

    Financial Viability; Organic Solid Waste; Sustainable Construction;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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